You’ve identified a prospective advisor. Perhaps you have even met a few times. The individual expresses an interest in considering the option but mentions that before she can do so she needs more information. As you are likely a privately-held company the information can only come from an internal source.

How to Proceed

1. Get a signed confidentiality agreement from the prospective advisor.
2. Remind the prospective advisor you are sharing information not available in the public domain.
3. Get a list of what specific information the prospective advisor is seeking.
4. Provide the requested information as soon as possible.
5. Offer an explanation of either when you will have the information or why it’s not available, if you don’t have a particular piece of information.

Types of Information to Provide

1. Historical financial statements for the last three years.
2. Current Strategic Plan including financial projections.
3. Operating Budget for last three years.
4. Capital Budget for last three years.
5. Organization Chart.
6. Current Marketing or Promotional Plan
7. Recent Competitor Analysis.
8. Recent Marketplace profile/review.
9. Top Ten Customers.
10. List of people advisor might want to speak with as part of his/her due diligence.

Again, if you don’t have all of the information explain why.  It could be one of the reasons you are forming the advisory board!  If you don’t make it a big mystery it won’t become a deal breaker if you decide to invite the prospective advisor to join.

What other information would you provide to someone you’re considering for your advisory board?

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